While economic growth decelerated in the second quarter of 2019, AMG view real GDP growth as respectable.
From AMG’s perspective, the second-quarter slowdown of U.S. real GDP growth is not a cause for concern. First-quarter growth was unsustainable, while current data show production and labor markets remain healthy. It is true that manufacturing activity has flattened out. However, activity in services remains quite robust. In any case, the near-term outlook for the economy still calls for solid growth. The main driver of domestic demand, consumer spending, is on track for trend growth of around 3.0%. Demand for labor remains strong, and household finances can support additional spending through income growth and lesser savings. Surveys show that consumers maintain a high level of confidence about the economy and their personal finances.